Dave Ramsey explains how man, 66, with £23,500 in savings can get by in retirement | Personal Finance | Finance

On the Ramsey Show Highlights YouTube channel, the American personal finance expert answered a listener’s concern about his situation. Ron, 66, called in concerned about his retirement plan.

Ron said: “We don’t make a lot of money. We own our own business so there have been times where we have had to skip taking a pay check.

“We are both receiving social security now so that supplements our income, but I don’t have a lot of money saved.

“I’m concerned that I might not have a lot of money to live on when it’s all said and done.

“We are debt free except for our house and we don’t owe a lot of money on that.”

Mr Ramsey admired their honesty and wanted to help them as they had a good heart.

As their business is still growing, there have been times they have had to skip taking a small pay check.

Ron’s wife works outside their home and they both receive social security payments so that supplement their income.

Ron and his wife owe $84,000 (around £73,000) on their home and they have around $30,000 (around £23,500) in their nest egg for retirement.

Their household income varies but on average it is $70,000 (around $60,000).

Both Ron and his wife plan to continue running their business for as long as possible, and they don’t have plans of stopping work.

Mr Ramsey suggested a five-year plan to Ron if he wanted to be able to get by as he gets older.

He wanted him to get the house paid off and put $100,000 (around $86,000) in mutual funds.

Mr Ramsey admired their honesty and wanted to help them as they had a good heart.

It may still not be enough but by the time he is 71, he will be approaching $200,000 (around £173,000) in there with the growth of the $30,000 (around £26,000) if it’s in mutual funds.

He said: “So you’ll be approaching $200,000 (around £173,000) with a paid for $600,000 (around £521,000) house.

“If you can’t make it, at least we know you can sell the house and move to a $400,000 (around £247,000) house.”

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